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Why Wait? The Speed of Foreign Market Re-Entry after Initial Entry and Exit

Author

Listed:
  • Irina Surdu

    (Henley Business School, University of Reading)

  • Kamel Mellahi

    (Warwick Business School)

  • Keith Glaister

    (Leeds University Business School)

  • Giulio Nardella

Abstract

Using a unique dataset comprising of over 1,000 foreign market re-entries by multinational enterprises, we examine the antecedents of speed of foreign market re-entry into previously exited markets. Contrary to previous studies, we find that the length of host market experience accumulated between initial entry and exit does not lead to earlier re-entries for the firms in our sample. The depth of experience accumulated through operating via joint ventures and the nature of the experience determined by the exit process have a positive and significant impact for early re-entrants. We highlight that the effect of knowledge accumulated through experience decreases as firms spend a long time out of the host market, with host institutional quality mediating the relationship between prior experiences and re-entry speed.

Suggested Citation

  • Irina Surdu & Kamel Mellahi & Keith Glaister & Giulio Nardella, 2017. "Why Wait? The Speed of Foreign Market Re-Entry after Initial Entry and Exit," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-05, Henley Business School, University of Reading.
    • Handle: RePEc:rdg:jhdxdp:jhd-dp2017-05
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    Keywords

    foreign market re-entry speed; exit; timeout; learning; experience; institutions;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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